Fitch affirms Bhakti Finance

Fitch Ratings said it affirmed PT Bhakti Finance's national long-term rating at BBB-(idn), along with its existing Rp 150 billion three-year senior bonds issued in 2007 at BBB-(idn).

The outlook remains negative.

The ratings reflect expectations for loan quality pressures to moderate following the hefty charges taken during 2008 to 2009 to clean up the bulk of its non-performing motorcycle receivables, Fitch said.

The company's efforts to diversify its receivables mix should also benefit from stronger domestic economic conditions in 2010, the agency said.

The outlook reflects the company's linkages with its parent, Bhakti Investama, Fitch said, and considers the possible impact if there is a significant deterioration in the parent's financial profile.

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